The EII Support Levy (ESL)
29 July 2025
What is the EII Support Levy?
As of April this year, a new charge called the EII Support Levy may have begun appearing on your invoices. The ESL has been introduced by the government to fund the Exemption Scheme for Energy Intensive Industries (EIIs). This essentially means that businesses not categorised as operating in Energy Intensive Industries will be offsetting the costs of businesses whose SIC codes do fall under the EII umbrella. This is being done to ensure UK businesses with large energy costs can remain competitive internationally.
Which businesses need to pay it?
All non-domestic UK energy users who don’t have a SIC code that classifies them as being a part of an Energy Intensive Industry will need to pay it. How the charge is applied will be at the discretion of suppliers with some suppliers yet to confirm exactly how they will be applying the charge.
How much is the charge likely to be?
The initial estimated rate of the EII Support Levy is expected to be between £0.90 - £1.40 per MWh (or £0.0009 - £0.0014 per kWh).
This means:
A business using 500,000 kWh annually could expect to pay an additional £700 per year, whereas a larger site using 2 million kWh may see a cost impact of £2,800 annually.
While this is lower than many other non-commodity charges, it’s still important for businesses to factor it into their energy budgets.
Which suppliers have confirmed how they will apply the charge?
Whilst you should check with your supplier to confirm how they will be applying the charge, the following table is based on announcements made by suppliers in regard to how they plan to implement the ESL:
There are a number of suppliers who have yet to clarify how they will be applying the charges.
What do you need to do?
In order to assess whether your business should be paying this charge, you need to know whether your business is regarded as operating in an EII. The full list of SIC codes can be found from page 28 on the following government document: Energy Intensive Industries (EIIs): Guidance for applicants seeking a certificate for an exemption
If your business has an eligible SIC code then you may apply for a certificate of exemption.
If your business does not have an eligible SIC code but you believe it has been incorrectly classified then you can apply to change the SIC code.
For businesses that do not have the exemption, it is important to understand how your supplier will be applying this charge and then to ensure it is applied correctly.
If you would like assistance with any of the above, then don’t hesitate to contact us today. Our team will gladly assist you either in applying for the exemption certificate, re-classifying your SIC codes, or ensuring that you are being charged correctly.
So don’t hesitate to contact Seemore Energy to speak to experienced advisers who can help you with all of your energy needs.
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